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Chicago Housing Authority lawyer fined $10 for citing fake cases 

Danielle Malaty used AI in court filings, resulting in 12 nonexistent citations

Chicago Housing Authority Lawyer Fined $10 for Fake Citation

Using AI engines to cite case law unchecked is not advisable for lawyers.

An attorney representing the Chicago Housing Authority in a lead paint poisoning case admitted to citing a non-existent court case after using ChatGPT. The tool provided a “hallucinated” reference, which she failed to verify before submitting to the court, the Chicago Tribune reported

Former Goldberg Segalla partner Danielle Malaty said in a court filing that she did not act in bad faith, and that the fake citations were unintentional. She also requested that no sanctions be made against her. 

“Ms. Malaty both recognizes and is immensely remorseful (to say nothing of embarrassed) for the burden that she has imposed,” the filing stated. 

The lead paint case wasn’t the only time it happened.

Malaty filed motions in two cases — the CHA case and Calderon v. Dynamic Manufacturing Inc. — that collectively contained 12 fake case citations. In the latter case, plaintiff Noemi Calderon accused her employer of violating her rights under the Illinois Human Rights Act by fostering a hostile work environment.

A $10 fine was issued July 16 by Cook County Circuit Judge William Sullivan sanctioning Malaty for her improper use of artificial intelligence. She also paid Calderon’s attorney $1,000 for “the amount of time that counsel incurred addressing the issue of the faulty case citations and the value of that time to counsel.” 

Malaty, who has since started her own practice and claimed to have now taken seven hours of training regarding the ethical use of AI, was fired by Goldberg Segalla earlier this year for her use of AI, which the firm prohibited. 

She had been working on an appeal of the January jury verdict that the CHA must pay more than $24 million to two residents who sued on behalf of their two children due to lead-based paint at a Rogers Park apartment. Though the property had long been managed by real estate firms the Habitat Company and East Lake Management Group, both were cleared of liability and later settled with plaintiffs for smaller amounts. 

Goldberg Segalla billed CHA more than $389,900 for legal services in the case, though the agency told the outlet that it will not be billed for any legal work related to the AI drama. — Eric Weilbacher

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